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10 Nov 2014
EUR/USD en-route to fill upside gap
FXStreet (Bali) - EUR/USD is trading at 1.2461 in the early going of Asian trade, with an upside gap at 1.2470 now being filled, following Friday's decent US NFP headline number, failing to meet ambitious expectations.
In terms of data ahead, there is not a while lot to increase order flow, with today's EU Sentix, some CPIs reads out of EZ countries mid week, and provisional Q3 GDP figures on Friday, the key events. Also, traders should be reminded that on Tuesday, trading activity should slow down significantly, as parts of Europe, US and Candada take a day off, which adds to the reasons for a potential quiet start to the week.
Jim Langlands, Founder at FXCharts, notes: "Technically, while the longer term indicators still point lower, the hourlies are pointing higher and the 4 hourly charts are showing some bullish divergence, suggesting that the Euro could make further gains in order to test the 100 HMA (1.2475), above which would see a run towards 1.2500 (1.2513:38.2% of 1.2769/1.2357) and potentially on to the 200 HMA at 1.2544. If the Euro runs out of steam here, then look for a retest of 1.2430 and possibly 1.2400."
In terms of data ahead, there is not a while lot to increase order flow, with today's EU Sentix, some CPIs reads out of EZ countries mid week, and provisional Q3 GDP figures on Friday, the key events. Also, traders should be reminded that on Tuesday, trading activity should slow down significantly, as parts of Europe, US and Candada take a day off, which adds to the reasons for a potential quiet start to the week.
Jim Langlands, Founder at FXCharts, notes: "Technically, while the longer term indicators still point lower, the hourlies are pointing higher and the 4 hourly charts are showing some bullish divergence, suggesting that the Euro could make further gains in order to test the 100 HMA (1.2475), above which would see a run towards 1.2500 (1.2513:38.2% of 1.2769/1.2357) and potentially on to the 200 HMA at 1.2544. If the Euro runs out of steam here, then look for a retest of 1.2430 and possibly 1.2400."